RefrigiWear
+41% sales
Up to 60 percent more margin of extra margin of extra margin
What is the best strategy for selling on Amazon?
It depends. Every brand has its own story.
This is the (successful) story of the well-known clothing brand RefrigiWear.
What is the best strategy for selling on Amazon? It depends. Each brand has its own story.
This is the (successful) one from the well-known clothing brand RefrigiWear.
As Jeff Bezos’ platform begins to depopulate, the RefrigiWear team begins to ask questions like these.
RefrigiWear is a well-known clothing brand, particularly popular for its garments with a technical-urban style. Until a few years do its products could be purchased in stores and, in some messy cases, even on Amazon, by some third-party distributors.
While the latter were able to reach a wider audience, they offered prices and content that were not always aligned with brand identity and policies.
Phase 0: RefrigiWear sells only to Amazon
To increase sales and control, RefrigiWear decides to officially preside over the platform. The sales model chosen is Vendor: in essence, Amazon buys part of the collection from the brand, operating as an ordinary retailer.
- The brand sells to Amazon at an often discounted wholesale price, to which Amazon requires various discounts to be applied for marketing, returns handling, etc. The result? The brand gets very small margins. The sum of the various discounts results in a discount on the wholesale price between 10 percent and 20 percent
- Amazon, by virtue of its commercial power, is free to sell at whatever price it sees fit
- Amazon buys a portion of product and generally requires the ability to return a percentage of unsold product at the end of the season
- To participate in special promotions such as Prime days or Black Friday, Amazon requires an additional discount on the wholesale price as a promotional contribution
- Amazon pushes brands to invest in advertising activities to boost sales when performance falls short of forecasts
Step 1: RefrigiWear sells to Amazon and on Amazon through YOCABÈ
To overcome the limitations of the Vendor strategy,the brand decides to flank a Seller strategy by relying on the YOCABÈ platform and thus on the technology and expertise of a Specialized Partner.
- Up to 60% higher margins
Selling through YOCABÈ Seller account proves to be more convenient and allows you to increase margins from 12% to 60%
- Full price control
YOCABÈ’s SmartPricing algorithms enable the brand to sell at the cheapest price at a given time, without affecting established margins and respecting the brand’s pricing policy
- Clean and optimized catalog
Product sheets feature titles, descriptions, and images in line with brand policies and identity
- Optimized and “lighter” logistics
In this first phase, it was decided to use FBA logistics to guarantee Prime service to Amazon customers.This avoided the brand having to interface with Vendor logistics (with all the complexity it invokes)
- Simplified International Invoicing
Selling across Europe and using FBA results in the need to have local VAT numbers (in at least 7 countries). YOCABÈ has enabled the brand to save onerous and complex activities such as those related to local taxation.
- Efficient Customer Service
The brand does not have to deal with customer inquiries, but YOCABÈ Customer Service does.
- Immediate feedback on the presence of “incorrect” third-party vendors
The brand is notified whenever other vendors’ prices fall below a certain threshold
- Feedback on “broken pages“
i.e., anomalous pages created by Amazon itself or by third-party sellers.
Phase 2 - RefrigiWear boosts YOCABÈ channel.
The results prompted RefrigiWear to increase the quantity of the product on the YOCABÈ Seller channel.
This second phase of the project is accompanied by targeted marketing campaigns that, compared with the previous year (Vendor account), produce a considerable increase in sales and orders and, at the same time, a marked improvement in ACOS and advertising spending.
- Increased sales
compared to the 2018-19 winter season, the brand generated a total of +41% more sales (Amazon Vendor account + YOCABÈ Seller account).
- Even more accurate digital content
The brand store (the digital storefront that Amazon reserves for the brand) is designed and to tell the identity and strengths of the products. The YOCABÈ marketing team takes care of this reserved space.
Step 3 - RefrigiWear sells on Amazon only through YOCABÈ
The benefits reaped lead the fashion brand to migrate completely to the Seller model.
Currently:
- RefrigiWear presides over marketplace only through YOCABÈ channel
- a multi-channel strategy is pursued: both Amazon FBA logistics (to take advantage of Prime benefits) and brand logistics are used. Thanks to SmartLogistics, the two systems are “connected” to increase available product and avoid waste and duplication of inventory
- YOCABÈ continues to deal with all aspects of online sales-from the creation of digital catalogs to customer service.
In the immediate future , we will strengthen our presence in some key markets, such as France and Spain
The numbers of the partnership
The results of the partnership with YOCABÈ
The partnership with Yocabé has resulted in some significant benefits for RefrigiWear:
+41% SALES
- Optimized Product Pages
- Brand Store content that tells about the product and increases likelihood of conversion
- Amazon Marketing Campaigns That Attract More Visits
UP TO +60% MARGIN
- The brand does NOT sell at a wholesale price
- No constraints on investing in advertising or reducing prices
- No obligation to receive unsold items back
GREATER CONTROL
- Policy-aligned pricing
- Digital content consistent with brand identity
- Full and consistent adherence to set margins
- Notifications about improper vendors
SIMPLIFICATION
- Multi-channel and efficient logistics structure
- 24/7 Multi-Language Customer Service is provided by Yocabe
- Brand is free from international billing requirements
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